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Air Costa 2014

India GDP Growth Rate

India has the highest GDP growth rate in the world

Passenger growth is over 15% per year
By the year 2020
Number of Aircrafts
Air passengers
Country population

: Will grow to 1,000 from 394 (Aug 2014)

: Will grow to 180 million from 65 million
: Will grow to over 1.5 billion from 1.2 billion
Air Costa 2013
2014

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India Past Air Capacity and Traffic Growth Trend

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2014

India Past Air Passenger Growth Trend

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India Projected Air Traffic Growth

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India Projected Aircraft Deliveries

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India Projected Aircraft Deliveries

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India Current Aircraft Orders

Air Costa

50

Embraer E-2 JETS (25 190s / 25 195s) + Option for 50

Air India

TBD

Discussion with Airbus for NEO

Indigo

240

A320 NEO

Jet Airways

50

B737 MAX

Go Air

72

A320 NEO

Spice Jet

35

B737 MAX

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Air Costa 2014

Vision & Mission

VISION

FOCUS SEGMENTS

To provide air transport services with reliability, safety, quality, efficiency

and customer care
MISSION
To fill a niche in the growing air-travel market linking metros to the smaller
cities in India, to achieve high, and profitable, load factors by identifying and
serving key routes and city pairs currently un-served, under-served, or poorly
served, and where significant unmet demand exists, and to set new standards
for air service and professionalism both within the target market region and
beyond.

Passenger

Cargo

Charter

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Air Costa 2014

Business Drivers

Market Drivers
Air travel is expected to grow steadily air traffic set to cross 180 million by 2020
Rapid urbanisation has lead to burst in traffic between metros and non metros
Secondary markets overtook Primary markets in 2012 (trend to continue)

Government and Policy Drivers

Favourable Government policy for investment by foreign carriers up to 49%
Development of Tier II and III cities airport infrastructure
Govt. approval for ancillary revenue potential for a sizeable revenue in the next two years
Exemption of sales tax on direct import of ATF
Tax on ATF (from >20% to 4%)
In AP Tax on ATF is 1% (Air Costas advance)

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2014

Value Proposition to Market

Service

Aircraft
Quieter Cabin
Spacious seat with best in class leg room
Hassle free No middle seat
Better turbulence handling
Reduced travel time
Large windows and wider aisle
Reliable and easy maintenance
Efficient long haul capacity

The biggest Galley amongst the aircraft serving

non trunk routes Better on board service
Strong understanding of the Indian consumers
Experienced and Dedicated team
Business class experience on regional routes
Flexible and competitive fares
Better cargo capacity

Schedule and Connectivity

Motivated by market needs
Better connectivity for Tier II and III cities
Convenient timing for both business and leisure travelers
Same day return flights
First flight of the day advantage
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2014

Route Strategy and Service Planned

Rationale for Route Selection ( other than statutory compliance)
Tier II & III cities
Increase frequency more departures from each operating stations
Target routes too thin for narrow body operations and too long for turboprops
ATRs and Q400 segments better value proposition for customer through E-Jets
Timing to suit majority the demographic of the travellers
Expand our network footprint in Southern Cities before expanding to other regions
Service planned
Web check in

Mobile Apps
Seat Blocking
Corporate Product
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2014

Journey so far

Highest load factor

among Indian airlines
50 E 2 aircraft firm
order

Launch of Commercial
Operation

Highest number of
passengers flown

Holiday
packages

Induction of 2 E 190

Hyderabad
connectivity

Inflight Meals

AOP

Sep
2013

Tirupati
connectivity

E 190 type
rated

Oct
2013

5 Cities

Nov
2013

New premises

Dec
2013

Jan
2014

Feb
2014

Mar
2014

Apr
2014

May
2014

Jun
2014

Jul
2014

Aug
2014

Sep
2014

Inflight
Magazine
3 Cities added

AOP renewed for

4 years

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2014

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Air Costa 2014

Operations so far
FLYING HOURS DETAILS
TYPE - ERJ 170/190 AIRCRAFT

2013/2014

AIRCRAFT IN FLEET

AIRCRAFT IN SERVICE

AIRCRAFT DAYS FLOWN

943

AVERAGE DAILY UTILISATION (FLYING HOURS)

TOTAL FLYING HRS
TOTAL

TOTAL BLOCK HRS

TOTAL LANDINGS
TOTAL FLYING HRS

REVENUE

TOTAL BLOCK HRS

TOTAL LANDINGS
TOTAL FLYING HRS

NON - REVENUE

TOTAL BLOCK HRS

TOTAL LANDINGS

09:40
8877:11:00

10882:23:00
7,127

TYPE ERJ 170NO OF

/ 190
LANDINGS
Oct-13
180
Nov-13
240
Dec-13
336
Jan-14
367
Feb-14
339
Mar-14
383
Apr-14
562
May-14
870
Jun-14
854
Jul-14
1011
Aug-14
1070
Sep-14
915

NUMBER OF
NO OF CYCLES INCIDENT
105
2
240
0
336
0
365
0
339
0
382
1
556
0
869
3
840
1
1006
1
1063
1
887
0

100.50
100
100.00

7,009
51:21:00
62:03:00

DISPATCH
RELIABILITY %
98.58
99.58
100
99.73
100
99.87
99.90
99.66
99.59
98.83
99.81
99.68

DISPATCH RELIABILITY %

8825:40:00
10820:10:00

DELAYS (>15
MIN)
2
1
0
1
0
0
0
3
4
5
1
3

99.58

100
99.73

99.87

99.90
99.66

99.81

99.59

99.68

99.50
98.83

99.00
98.58
98.50
98.00

118

97.50
Oct/13 Nov/13 Dec/13 Jan/14 Feb/14 Mar/14 Apr/14 May/14 Jun/14 Jul/14 Aug/14 Sep/14Promoted by

Air Costa 2013

2014

Future Plan

PHASE 1: 2015

PHASE 2: 2016-2017

PHASE 3: 2018-2021

Add 6 Aircrafts to reach 10

Add 15 Aircrafts to reach 25

Induction of 50 E2 E-190s / E-195s

aircrafts purchased from Embraer

Start Pan India Operations

Add as many as possible Tier II &

III cities across India

Reach 75 Embraer Aircrafts

Become part of GDS

Go Public

Add a new fleet to complete on

truck routes within India

Get AOPs in other countries

Codeshare with couple of

international carriers for east and
west passenger traffic
Add Cargo & Charter Services

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Air Costa 2014

Financial Projections

Milestones

Projections

2013-'14

2014-'15

2015-'16

2016-'17

2017-'18

Revenues

7.82

$ 64.85

$ 120.00

$ 250.00

$ 450.00

Aircraft Leases

3.48

$ 11.67

$ 18.39

$ 34.17

$ 56.19

Fuel Cost

7.55

$ 38.80

$ 60.47

$ 111.92

$ 183.71

Year 2016-17: 17 Aircrafts

Part of GDS

Maintenance

2.28

$ 10.59

$ 16.04

$ 29.35

$ 47.94

Employees

3.50

9.04

$ 15.28

$ 23.99

Year 2017-18: 25 Aircrafts

4 Airbus / Boeing

Other Expenses

4.20

$ 12.10

$ 19.29

$ 37.14

$ 63.95

Total Expenses

$ 21.01

$ 80.24

$ 123.23

$ 227.86

$ 375.78

EBITDA

$ (13.19)

$ (15.39)

$ (3.23)

$ 22.14

$ 74.22

Year 2015-16: 10 Aircrafts

Codeshare

7.08

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INVESTMENT PROPOSAL
Promoters so far have invested

Over $60MM

Investment Required

$225MM

Equity Offered

39%

Revenue share to investor until IPO

2%

Use of Proceeds
Expansion & Growth capital - $100MM
Working capital requirements - $100MM
General corporate purposes - $25MM

Sale Lease Back Transaction Capital

Air Costa also requires access to additional capital to do SLB transactions on a short-term basis.

Exit
IPO (Minimum $1.0B Market Cap)
Timeframe 4-5 Years

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Thank You

Promoted by

Air Costa 2013

2014